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Friday, November 15, 2013

Grassley, Colleagues Urge Administration to Support Biodiesel

Senator Chuck Grassley Press Release:

For Immediate ReleaseNovember 14, 2013

Grassley, Colleagues Urge Administration to Support Biodiesel

(Washington, DC) – Today, U.S. Senators Patty Murray (D-WA), Al Franken (D-MN), Roy Blunt (R-MO), and Chuck Grassley (R-IA) led 28 of their Senate colleagues in a bipartisan letter urging the Obama Administration to support the American biodiesel industry in its upcoming 2014 regulatory proposal for the Renewable Fuel Standard (RFS). Current projections indicate that the industry will produce 1.7 billion gallons of biodiesel in 2014, continuing its pattern of exceeding annual RFS targets. In light of the this production estimate, the Senators urged the Administration to carefully consider its 2014 biodiesel targets, which, if decreased or left stagnant at 2013 levels, could cost thousands of American jobs and significantly impact confidence in industry investments.

“Biodiesel has exceeded RFS targets in each year and is clearly poised to do so again in 2013. The industry has had impressive growth, going far beyond initial expectations just five years ago, and is supporting 62,160 jobs and nearly $17 billion in total economic impact. Biodiesel is improving our energy security by reducing our dependence on imported petroleum diesel, diversifying fuel supplies and creating competition in the fuels market,” the Senators wrote. “Setting the 2014 biodiesel volume requirement at reduced levels could have severe impacts on the domestic biodiesel industry. Further, a continuation of 2013 levels paired with any reduction in advanced biofuels targets could similarly negatively impact the industry.”

We write to encourage the Administration to develop a 2014 regulatory proposal for the Renewable Fuel Standard (RFS) that supports the current-year projected 1.7 billion gallons of U.S. biodiesel production.

Biodiesel has exceeded RFS targets in each year and is clearly poised to do so again in 2013. The industry has had impressive growth, going far beyond initial expectations just five years ago, and is supporting 62,160 jobs and nearly $17 billion in total economic impact. Biodiesel is improving our energy security by reducing our dependence on imported petroleum diesel, diversifying fuel supplies and creating competition in the fuels market.

Setting the 2014 biodiesel volume requirement at reduced levels could have severe impacts on the domestic biodiesel industry. Further, a continuation of 2013 levels paired with any reduction in advanced biofuels targets could similarly negatively impact the industry.

Biodiesel is the only Environmental Protection Agency (EPA)-designated advanced biofuel to achieve commercial-scale production nationwide and the first to reach 1 billion gallons of annual production. Keeping the targets stagnant, rather than gradually allowing the biodiesel industry to grow, could leave 400 million gallons of biodiesel potentially unused – roughly 25 percent. Such a cut could result in nearly every small facility shutting down and permanently ceasing production of biodiesel, leading to the loss of some 7,000 jobs. Additionally, investment and financing for the U.S. biodiesel industry could be severely jeopardized, creating new and possibly insurmountable hurdles for the remaining producers to grow and expand.

In setting 2014 targets for biodiesel, the EPA should avoid outcomes that could lead to plant closures, worker layoffs, and uncertainty over future investments in the biodiesel industry. We urge you to continue to support this fragile and growing industry with a reasonable increase in the RFS volume requirement for 2014.